Building Business Credit

May 4, 2018 | Filed under: Business

If you are in business, and or trying to build a business, you know the need on occasion for additional capital, to cover a cash flow shortage, buy assets and grow. Certainly, you put in your own money, but a better plan is to build business credit. Over time, build a commercial credit file. So, if you want you can borrow money.

To build business credit most folks start with the 3 major reporting agencies:

  • Dun & Bradstreet.
  • Equifax Small Business.
  • Experian Commercial.

But did you know there are a dozen business report agencies out there? It is a good idea to understand the requirements of each. And how to get a file started on your business. As many offer loans, pre approved vendors, credit cars, lines of credit, leasing offers, and more.

Here is a list of potential agencies, you want to develop over time. Even if you take this list and only do one a month, over time, you will build a positive profile.

  1. Dun & Bradstreet. The anchor company in the business credit arena. 30 plus million USA business profiles, and over 200 million worldwide. You must have a profile with this company. They offer a free service and also a paid service. You must get a DUNS number. Go file out their information today!
  2. Equifax Small Business. One of the big 3. Equifax is a major reporting agency in the business arena. 22 million small businesses. 240 million world wide. They often collect and evaluate invoices (that are paid or not) worldwide.  
  3. Experian Commercial. 25 million active businesses, the third largest business credit player.
  4. Credit.net. 45 plus years in business. Credit. net has close to 16 million businesses in Canada and the USA. The provide business credit reports on public, and private companies.
  5. FICO® Small Business Scoring Service. In 1993 FICO (SBSS) was launched using personal as well as business history to determine a FICO score. 7500 lenders use this service to approve lending. Major banks, and credit services.
  6. LexisNexis Accurint. 400k of private and public companies. They use a simple 3 digit score to evaluate the business, owners, and people associated with the business. The score (index), can be used by banks, vendors and credit serves to give a predictive score of risk.
  7. Paynet®. Since 1999 Paynet has tracked 1.2 trillion in loans and leases based on over 20 million contracts and leases from USA lenders. Mainly used by banks and commercial loan institutions.
  8. National Association of Credit Management. For almost 19 plus years, this group has been focus one business to business credit. Including business reports, and trade reference insights by business. Over 15k in it’s database over 1000 various industries.

There are some specific credit reporting agencies by type of business. For eacmple

  • Seafax. This agency primarily deals with the food industry.
  • Trarnell. Focuses on industrial equipment and materials (plastics industry)
  • Lumbermen Credit Reporting Group. Since 1915 this company been providing credit reports and focus mainly on construction and mercantile commercial activities.
  • Ansonia. Develops files and report by industry. Two examples would the construction industry, and electronic distributors industry. They really do not sell their data, captured on private and public companies, but rather sell industry specific reports. 25 million accounts and 140 different types of businesses.
  • Cortera.  The Cortera Credit Exchange  focus’s on the the transportation industry. A large database of over 10 million business profiles.

Establishing and building a business credit report is critical to your business credit and potential funding. Today, you should start building your business profile, with: Banks, Lenders, Vendors, Retailers, Leasing companies (equipment and vehicle) and suppliers, so when you need it you have credit. In fact one of my personal goals is to have 100k in business credit with in 1 year of

 

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